Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $1,400,000,000 for the first half of 2025, reflecting strong operational performance amid a tight global nitrogen supply-demand balance [5][18] - Net earnings attributable to common stockholders were $698,000,000 or $4.2 per diluted share for the first half of 2025, compared to $386,000,000 or $2.37 per diluted share for the same period in 2024 [18][19] - Net cash from operations was $2,500,000,000, and free cash flow was $1,700,000,000 for the trailing twelve months [19] Business Line Data and Key Metrics Changes - The company produced 5,200,000 tons of gross ammonia in the first half of 2025, achieving a 99% utilization rate, with an expected total production of approximately 10,000,000 tons for the full year [8][18] - The Donaldsonville carbon capture and sequestration project began operations in July, expected to reduce CO2 emissions by up to 2,000,000 metric tons per year and generate significant returns through tax credits and premium sales of low carbon ammonia [9][20] Market Data and Key Metrics Changes - The global nitrogen supply-demand balance continued to tighten, driven by strong demand in North America and India, alongside low global nitrogen inventories and production disruptions in key supply regions [11][14] - Brazil and India are projected to import over 8,000,000 metric tons of urea by the end of the year, indicating robust global demand [14] Company Strategy and Development Direction - The company is focused on executing strategic initiatives, including the Blue Point joint venture and the Donaldsonville CCS project, to enhance its low carbon ammonia production capabilities [5][10] - The company aims to maintain a balanced capital allocation strategy, investing in growth while returning substantial capital to shareholders, with $2,400,000,000 authorized for share repurchases [19][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to create shareholder value due to favorable global nitrogen industry dynamics and strong operational performance [7][25] - The company anticipates that the global nitrogen supply-demand balance will remain tight in the near and medium term, with ongoing demand for low carbon ammonia expected to further tighten the market [16][25] Other Important Information - The company has returned approximately $2,000,000,000 to shareholders over the last twelve months, including repurchasing more than 10% of its outstanding shares [6][19] - The company is preparing to ship its first cargo of low carbon ammonia from the Donaldsonville project, which is expected to command a premium in the market [16][20] Q&A Session Summary Question: Outlook for returns from the Blue Point joint venture - Management discussed the importance of depreciation and tax credits in calculating returns, indicating that they do not expect significant changes to overall project returns [27][28] Question: Future crop and fertilizer price dynamics - Management acknowledged the disconnect between crop prices and input costs, emphasizing that nitrogen remains a non-discretionary nutrient for farmers [31][35] Question: Inventory and loading issues at the Donaldsonville facility - Management clarified that the report of loading issues was incorrect, attributing low inventory levels to high demand rather than operational problems [38][40] Question: Cost pressures in the first half of the year - Management explained that increased SG&A costs were due to legal fees related to the Blue Point joint venture and adjustments in variable compensation for employees [44][46] Question: Cash flow and uses of cash moving forward - Management indicated that they would likely prioritize share repurchases as cash generation exceeds expectations, while also managing capital expenditures for the Blue Point project [66][67] Question: Impact of geopolitical events on nitrogen prices - Management expressed that ongoing geopolitical tensions would likely maintain high nitrogen prices and limit supply from certain regions [96][99] Question: Expectations for Chinese nitrogen exports - Management noted that while there are exportable tons available from China, the actual volume may be limited due to domestic demand and pricing dynamics [76][78]

Financial Data and Key Metrics Changes - For the first half of 2025, the company reported adjusted EBITDA of $1.4 billion, reflecting strong operational performance amid a tight global nitrogen supply-demand balance [4][15] - Net earnings attributable to common stockholders were $698 million, or $4.2 per diluted share, compared to $386 million, or $2.37 per diluted share in the same period last year [15][18] - Net cash from operations for the trailing twelve months was $2.5 billion, with free cash flow at $1.7 billion [16][18] Business Line Data and Key Metrics Changes - The company produced 5.2 million tons of gross ammonia in the first half of 2025, achieving a 99% utilization rate, with an expected total production of approximately 10 million tons for the full year [7][15] - The Donaldsonville carbon capture and sequestration project began operations in July, expected to reduce CO2 emissions by up to 2 million metric tons per year and generate significant returns through tax credits and premium sales of low carbon ammonia [8][18] Market Data and Key Metrics Changes - The global nitrogen supply-demand balance continued to tighten, driven by strong demand from North America and India, alongside low inventories and production disruptions in key supply regions [9][12] - Brazil and India are projected to import over 8 million metric tons of urea by the end of the year, indicating robust global demand [12][13] Company Strategy and Development Direction - The company is focused on executing strategic initiatives, including the Blue Point joint venture and the Donaldsonville CCS project, to enhance its low carbon ammonia production capabilities [4][8] - The company aims to maintain a balanced capital allocation strategy, investing in growth while returning substantial capital to shareholders, with $2.4 billion authorized for share repurchases [17][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing tight nitrogen supply-demand balance, anticipating robust nitrogen demand in North America despite farmer economics concerns [11][13] - The company expects to generate incremental EBITDA and free cash flow from the Donaldsonville CCS project, projecting over $100 million annually from tax incentives and product premiums [18][19] Other Important Information - The company acknowledged the upcoming retirement of a key executive, Ashraf Malik, and celebrated the 20th anniversary of its IPO, highlighting its growth and operational excellence over the years [20][22] - The company has seen a nearly threefold increase in nitrogen capacity per share since 2010, positioning itself as a global leader in the industry [22] Q&A Session Summary Question: Outlook for returns from the Blue Point joint venture - Management discussed the importance of depreciation and tax credits in return calculations, indicating that they do not expect material changes to overall project returns [25][27] Question: Impact of crop and fertilizer prices on future profitability - Management noted that nitrogen is a non-discretionary nutrient, and farmers will likely optimize yield despite input cost pressures [29][32] Question: Clarification on loading operations at the Donaldsonville facility - Management clarified that there were no operational issues at the facility, attributing low inventory levels to high demand rather than production problems [36][39] Question: Drivers of increased SG&A and controllable costs - Management identified legal fees related to the Blue Point joint venture and adjustments in variable compensation as key drivers of increased SG&A costs [40][42] Question: Cash flow from the carbon capture project - Management explained that cash benefits from tax credits would begin to be realized in the third quarter, with expectations for cash settlements in 2026 [48][52] Question: Supply side dynamics and geopolitical impacts - Management highlighted ongoing geopolitical tensions and gas shortages affecting nitrogen supply, while expressing a positive outlook for demand in the second half of the year [58][63] Question: Future of nitrogen supply and demand balance - Management emphasized that new production capacity is not keeping pace with demand growth, leading to a continued tight market [78][82]

Financial Performance Highlights - Q2 2025 net earnings reached $386 million[9] - Q2 2025 adjusted EBITDA was $761 million[11], while the last twelve months (LTM) adjusted EBITDA totaled $25 billion[11] - First half (1H) 2025 net earnings amounted to $698 million[13] - First half (1H) 2025 adjusted EBITDA was $14 billion[13], a 16% increase compared to 1H 2024[18] - Last twelve months (LTM) free cash flow for Q2 2025 was $17 billion[13] - The company returned $19 billion to shareholders in the last twelve months (LTM) through Q2 2025[13] Operational Excellence and Capital Allocation - The company's capacity utilization for 1H 2025 was 99%[15] - The 12-month rolling average recordable incident rate was 030 per 200,000 work hours as of June 30, 2025[15] - Share repurchase authorizations through 2029 are approximately $24 billion[15] Strategic Initiatives and Outlook - The Donaldsonville carbon capture and storage (CCS) project started up in July 2025 and is capturing CO2 at the expected rate[18, 21] - The company projects ~$100 million in free cash flow annually for 12 years from the Donaldsonville CCS project[21] - Gross ammonia production in 2025 is expected to be approximately 10 million tons[18] - Strategic initiatives are projected to increase EBITDA by 20% to ~$3 billion and free cash flow by 33% to ~$2 billion from the current mid-cycle to the expected 2030 mid-cycle[18]

Financial Data and Key Metrics Changes - The company reported a consolidated net loss of $90 million for the second quarter of 2025, with a loss per share of $1.14 and an EBITDA loss of $24 million [5][11] - Adjusted EBITDA for the quarter was $99 million, with an adjusted loss per share of $0.23 [11] - The negative mark to market impact on the RFS obligation was $89 million, and the unfavorable inventory valuation impact was $32 million [11] Business Line Data and Key Metrics Changes - In the Petroleum segment, total throughput was approximately 172,000 barrels per day, with a light product yield of 99% on crude oil processed [5] - Adjusted EBITDA for the Petroleum segment was $38 million, driven by increased Group 3 crack spreads, offset by higher RIN prices and lower throughput volumes [11] - The Fertilizer segment achieved an adjusted EBITDA of $67 million, supported by higher UAN and ammonia sales pricing and volumes [11] Market Data and Key Metrics Changes - Group 3 2-1-1 benchmark cracks averaged $24.02 per barrel for the second quarter, compared to $18.83 per barrel in the same period last year [6] - Average RIN prices for 2025 were approximately $1.11, an increase of over 70% from the prior year [6] - Nitrogen fertilizer prices for 2025 were higher for both UAN and ammonia compared to 2024 [10] Company Strategy and Development Direction - The company plans to focus on improving capture rates, reducing costs, and growing the business profitably [25] - The alkylation project at Wynnewood is expected to enhance the ability to produce premium gasoline, with completion anticipated in 2027 [19] - The company is cautiously optimistic about the refining sector's near and medium-term outlook, given low refined product inventories and steady demand [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the refining market, citing low inventories and steady demand for refined products [17][20] - The company is awaiting final regulations from the IRS regarding PTC benefits, which could positively impact the Renewables segment [9][21] - Management indicated that the energy transition is evolving, with a belief that gas and diesel will remain essential fuels for the foreseeable future [48] Other Important Information - The company ended the quarter with a consolidated cash balance of $596 million and total liquidity of approximately $759 million [15] - Significant cash uses included $189 million for capital and turnaround spending and a $70 million prepayment on the term loan [13] Q&A Session Summary Question: Impact of excess inventory on financials - Management acknowledged that excess inventory during turnaround seasons negatively impacted financial performance, estimating a 7% to 9% decline in capture rates due to timing of product sales [31][35] Question: 2026 CapEx and turnaround outlook - Management indicated that there are no major turnarounds planned for 2026, and guidance on capital spending will be provided later in the year [36] Question: Strategic focus for new leadership - Management emphasized the need for diversification and the potential for future acquisitions to mitigate reliance on a single market [40] Question: Dividend reinstatement considerations - Management expressed a desire to return to dividend payments as soon as possible, with ongoing discussions at the board level [48][51] Question: Small refinery exemptions outlook - Management discussed the ongoing challenges with small refinery exemptions and the potential for legal action if necessary, emphasizing the importance of these exemptions for rural refineries [54][56]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported net sales of $169 million, net income of $39 million, and EBITDA of $67 million, with a declared distribution of $3.89 per common unit [5][8] - Consolidated ammonia plant utilization was 91%, impacted by planned and unplanned downtime, with combined ammonia production of 197,000 gross tons [5][8] - UAN and ammonia prices increased by 181% and 14% respectively compared to the prior year, driven by strong demand and tight inventories [6][12] Business Line Data and Key Metrics Changes - The company sold approximately 345,000 tons of UAN at an average price of $317 per ton and 57,000 tons of ammonia at an average price of $593 per ton [6][8] - Direct operating expenses for Q2 2025 were $60 million, with an increase of approximately $6 million from the previous year due to higher natural gas and electricity costs [8][34] Market Data and Key Metrics Changes - The USDA estimates a 4% increase in corn planting and a 3% decrease in soybean planting for 2025, with yield estimates of 181 bushels per acre for corn and 52.5 bushels per acre for soybeans [11][12] - Global nitrogen fertilizer inventories remain tight, supporting pricing, with geopolitical conflicts impacting supply [13][14] Company Strategy and Development Direction - The company is focusing on expanding ammonia capacity by approximately 8% and improving feedstock flexibility at its Coffeyville facility [16][18] - Ongoing projects aim to enhance reliability and production rates, with a target of operating plants at utilization rates above 95% [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand for nitrogen fertilizers continuing into the second half of the year, despite some planned and unplanned downtime [11][12] - The company anticipates a significant portion of capital spending for 2025 will be funded through cash reserves, with total capital spending estimated between $55 million and $65 million [8][9] Other Important Information - The company plans a 30-day turnaround at the Coffeyville facility starting in early October, with expected expenses of approximately $15 million [18][19] - The CEO of the parent company, CVR Energy, announced retirement, with the current CEO of CVR Partners set to take over the role [19] Q&A Session Summary Question: Timing of UAN summer fill program and pricing strength - Management indicated that the summer UAN fill has not yet been completed, with expectations for it to occur in the next few weeks, and pricing is expected to decline less than usual due to tight supply [24][25] Question: Outlook on ammonia pricing for fall application - Management expects fall pricing to be similar to spring pricing, with a discount anticipated but not as significant as in previous years [26] Question: Increase in direct operating costs and maintenance expenses - Management acknowledged higher repair costs and inventory drawdowns contributing to increased direct operating expenses, with expectations for continued elevated costs in the third quarter [27][34] Question: Status of unplanned downtime and future utilization - Management confirmed that planned outages were managed well, and unplanned outages were addressed without expectation of recurrence [35][36] Question: Industry consolidation outlook - Management noted a favorable view towards consolidation in the nitrogen fertilizer space, influenced by geopolitical events and the potential merger of major rail companies [41][42] Question: Capacity from brownfield reliability and redundancy projects - Management indicated that brownfield projects could add approximately 100 tons per day of ammonia production at Coffeyville and 5% at East Dubuque, emphasizing the cost-effectiveness of these projects [44][45]

Financial Data and Key Metrics Changes - Sales volumes increased by 6% year over year, driven by improvements in sales volumes of AN and UAN due to higher ammonia production and better performance by upgrading plants [4] - Adjusted EBITDA for Q2 2025 was $38 million, down from $42 million in Q2 2024, impacted by higher natural gas costs despite higher pricing for UAN and increased sales volumes [10][11] - The cash balance remains strong, with $32 million of senior secured notes repurchased during the quarter [11] Business Line Data and Key Metrics Changes - The company ramped up ammonium nitrate solution volumes as part of its industrial business expansion, with strong demand from copper and gold mining activities [6] - UAN prices increased significantly, with current NOLA UAN price at $350 per tonne, over 70% higher than the previous year [9] - The company expects to see meaningful increases in both UAN and AN sales volumes compared to the prior year, while forgoing ammonia sales in favor of higher-margin products [13] Market Data and Key Metrics Changes - The spring 2025 planting season resulted in strong demand and pricing for nitrogen fertilizers, with USDA estimating an increase in planted corn acres to 95.2 million from 90.6 million [8] - The Tampa ammonia price for August is $487 per ton, reflecting reduced supply from the Middle East, North Africa, and Russia [12] - Demand for nitric acid remains strong, supported by the resilience of the U.S. economy [7] Company Strategy and Development Direction - The company is focusing on improving the reliability and efficiency of its facilities while investing in storage and logistics capabilities to support its growing industrial business [11][15] - A strategic shift is underway to increase the percentage of contractual industrial sales, which allows the company to pass through natural gas costs and provides a more stable earnings base [15] - The company is also progressing on a low carbon project at El Dorado, with expectations to begin CO2 injections by the end of next year [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the prospects for the remainder of the year, highlighting the successful shift in sales mix and continued focus on capital allocation [15] - The company anticipates that third-quarter gas prices will be less of a headwind compared to the previous year, with expectations for a healthy year-over-year increase in adjusted EBITDA [12][13] - Management noted that while there are still operational improvements to be made, they expect costs to reach an inflection point in 2025 and start trending down thereafter [29] Other Important Information - The company will participate in the Jefferies Industrial Conference and the UBS Global Materials Conference in September [16] - The company has a lawsuit with Leidos scheduled to go to trial in late October [50] Q&A Session Summary Question: Outlook for UAN volumes in the second half - Management expects higher UAN production and sales in the second half due to operational improvements at the Pryor facility, despite seasonal sales dynamics [20][21] Question: Cost trends as operational rates stabilize - Management indicated that costs are expected to reach an inflection point in 2025, with ongoing initiatives aimed at reducing costs and improving efficiencies [29][30] Question: Impact of tariffs on U.S. nitrogen prices - Management noted that while it is difficult to discern the impact of tariffs due to current market dynamics, they are closely monitoring the situation, especially regarding Russia [34][35] Question: Signs of demand destruction from farmers due to fertilizer prices - Management reported no significant demand destruction observed during the spring season, but noted some hesitancy from retailers as prices remain elevated [38] Question: Changes in permitting and regulatory environment - Management observed more user-friendly dialogue with federal and state agencies, which has positively impacted environmental conversations and project discussions [41]

Financial Data and Key Metrics Changes - CF Industries reported adjusted EBITDA of $644 million for Q1 2025, reflecting strong performance in the global nitrogen industry [5][15] - Net earnings attributable to common stockholders were approximately $312 million, or $1.85 per diluted share, marking a 60% increase compared to Q1 2024 [15] - Free cash flow was approximately $1.6 billion, with a conversion rate of 63% from adjusted EBITDA [15][17] Business Line Data and Key Metrics Changes - The company produced over 2.6 million tons of gross ammonia, achieving a 100% utilization rate for the second consecutive quarter [7] - Projected gross ammonia production for 2025 is approximately 10 million tons [7] Market Data and Key Metrics Changes - Strong global demand for nitrogen fertilizers is driven by low corn stocks and favorable farmer economics in North America, with USDA reporting corn planting expectations of 95 million acres [11][12] - Low channel inventories of nitrogen fertilizers due to high demand and production outages have supported prices into Q2 [12] Company Strategy and Development Direction - CF Industries is focused on growth through the Blue Point joint venture with JERA and Mitsui, which aims to supply low carbon ammonia [5][8] - The company is nearing completion of its carbon capture and sequestration project at the Donaldsonville complex, expected to start in H2 2025 [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable nitrogen industry conditions and the company's ability to generate strong cash flow [19] - The global nitrogen supply-demand balance is expected to tighten through the end of the decade, with increasing demand for low carbon ammonia [13][19] Other Important Information - CF Industries has returned $5 billion to shareholders since 2022 through share repurchases and dividends, with an additional $2 billion share repurchase program authorized [6][16] - An Investor Day is scheduled for June 24 in New York to discuss strategy and long-term outlook [18] Q&A Session Summary Question: Do you have any off-take agreements for blue ammonia from D. Ville? - Yes, agreements are in place for growth, with some tied to exports to Europe and industrial contracts [21] Question: Is the Air Products project something CF Industries might be interested in? - No, the project has high operating costs that are not competitive for CF Industries [24] Question: Can you clarify JERA's option to reduce their stake in BluePoint? - JERA is expected to maintain their 35% ownership, and any reduction would still leave CF Industries with a comfortable stake [29] Question: How do you see the market for urea and UAN evolving? - The market has been strong, but there may be a cooling off as inventories are low and demand remains high [36] Question: How are you mitigating potential capital inflation for BluePoint? - The company is using modular construction to reduce on-site labor costs and inflationary pressures [40] Question: What is the expected impact of tariffs on nitrogen derivative markets? - Tariffs may create trade policy advantages for Russian products, impacting pricing and trade flows [55][57] Question: How do you view the current agricultural fundamentals? - Agricultural fundamentals are mixed, with low corn inventories globally, but farmers are expected to maximize nitrogen use for corn production [90]

Financial Data and Key Metrics Changes - CF Industries reported adjusted EBITDA of $644 million for Q1 2025, reflecting strong performance amid favorable global nitrogen industry conditions [5][15] - Net earnings attributable to common stockholders were approximately $312 million, or $1.85 per diluted share, marking a 60% increase compared to Q1 2024 [15] - Free cash flow was approximately $1.6 billion, with a conversion rate of 63% from adjusted EBITDA [15][17] Business Line Data and Key Metrics Changes - The company produced over 2.6 million tons of gross ammonia, achieving a 100% utilization rate for the second consecutive quarter [7] - Projected gross ammonia production for 2025 is approximately 10 million tons [7] Market Data and Key Metrics Changes - Strong global demand for nitrogen fertilizers is driven by low corn stocks and favorable farmer economics in North America, with USDA reporting corn planting expectations of 95 million acres [11][12] - Low channel inventories of nitrogen fertilizers due to high demand and production outages have supported prices into Q2 [12] Company Strategy and Development Direction - CF Industries is focused on growth through the Blue Point joint venture with JERA and Mitsui, which aims to supply ammonia and develop demand for low carbon ammonia [5][8] - The company is nearing completion of its carbon capture and sequestration project at the Donaldsonville complex, expected to start in H2 2025 [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable nitrogen supply-demand balance and the company's position for future growth [19] - The company anticipates continued strong cash generation and value creation for long-term shareholders [19] Other Important Information - CF Industries has returned $5 billion to shareholders since 2022 through share repurchases and dividends, with an additional $2 billion share repurchase program authorized [6][16] - The company expects capital expenditures of approximately $650 million for the full year, with significant investments in existing operations and the Blue Point project [17] Q&A Session Summary Question: Do you have any off-take agreements for blue ammonia from D. Ville? - Management confirmed that agreements are in place for blue ammonia, structured for growth, with expectations for increasing demand as the product becomes available [21][22] Question: Is CF Industries interested in the Air Products ammonia loop project? - Management indicated that the project does not align with their competitive strategy due to high operating costs associated with hydrogen production [24][25] Question: Can you clarify the conditions regarding JERA's stake in Blue Point? - Management expects JERA to maintain a 35% ownership level, and if they return 15%, CF Industries would still be comfortable with a 55% ownership [29][30] Question: How do you view the current urea and UAN market? - Management expressed satisfaction with their order book and noted that low inventories in North America are supporting strong prices [36] Question: What is the expected impact of tariffs on nitrogen derivative markets? - Management discussed the complexities of trade flows, noting that Russian fertilizers are entering the U.S. market tariff-free, which complicates the pricing dynamics [55][57] Question: How will Blue Point be reported in financials? - Management confirmed that Blue Point will be consolidated into financials, with revenues and costs reported in the ammonia segment [105]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $644 million for Q1 2025, reflecting strong performance in the global nitrogen industry [5][16] - Net earnings attributable to common stockholders were approximately $312 million, or $1.85 per diluted share, marking a 60% increase compared to Q1 2024 [16] - Free cash flow was approximately $1.6 billion, with a conversion rate of 63% from adjusted EBITDA [16][18] Business Line Data and Key Metrics Changes - The production network achieved over 2.6 million tons of gross ammonia, reflecting a 100% utilization rate [7][8] - The company projects approximately 10 million tons of gross ammonia production for 2025 [8] Market Data and Key Metrics Changes - Strong global demand for nitrogen fertilizers is driven by low corn stocks and favorable farmer economics in North America [11][12] - The USDA reported corn planting expectations of 95 million acres in the U.S., with potential for higher final planted acres due to nitrogen demand [11] - Global nitrogen inventory is expected to remain low, supporting strong demand in key consuming regions like Brazil and India [12][13] Company Strategy and Development Direction - The company is focused on growth through the Blue Point joint venture with JERA and Mitsui, aimed at supplying low carbon ammonia [5][8] - The Donaldsonville complex carbon capture and sequestration project is nearing completion, expected to start generating tax credits in H2 2025 [8][18] - The company plans to return $5 billion to shareholders through share repurchases and dividends since 2022, with an additional $2 billion share repurchase program authorized [6][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for future growth, citing favorable industry dynamics and strong cash generation [20] - The global nitrogen supply-demand balance is expected to tighten through the end of the decade, with increasing demand for low carbon ammonia [13][20] Other Important Information - The company will hold an Investor Day on June 24 in New York to discuss strategy and long-term outlook [19] - Capital expenditures for 2025 are expected to be approximately $650 million, with significant investments in the Blue Point project [18] Q&A Session Summary Question: Do you have any off-take agreements for blue ammonia from D. Ville? - The company has agreements in place for blue ammonia, structured for growth, with expectations for increasing demand as the product becomes available [22] Question: Is the Air Products project something the company might be interested in? - The company is not interested in the Air Products project due to high operating costs associated with hydrogen production [25] Question: Can you clarify the partnership stakes in BluePoint and potential changes in offtake? - The company expects JERA to maintain their 35% ownership, and any incremental ownership would be manageable in terms of marketing the tons [30][32] Question: How do you see the market for urea and UAN evolving? - The company is pleased with its order book and expects a positive market environment for Q2 and Q3, despite low inventories [36] Question: How is the company mitigating potential capital inflation for the Blue Point project? - The company is using modular construction to reduce on-site labor and inflationary pressures, with fixed-price contracts for modules [40][41] Question: What is the company's view on nitrogen cost curves and free cash flow conversion? - The U.S. is expected to remain a low-cost region for gas production, supporting strong free cash flow generation [44][46] Question: How will the company report Blue Point in its financials? - The company plans to consolidate Blue Point into its financials, reporting it within the ammonia segment [110]

Financial Data and Key Metrics Changes - CF Industries reported adjusted EBITDA of $644 million for Q1 2025, reflecting strong performance in the global nitrogen industry [4] - Net earnings attributable to common stockholders were approximately $312 million, or $1.85 per diluted share, marking a 60% increase compared to Q1 2024 [14] - Free cash flow was approximately $1.6 billion, with a conversion rate of 63% from adjusted EBITDA [14][15] Business Line Data and Key Metrics Changes - The company produced over 2.6 million tons of gross ammonia, achieving a 100% utilization rate for the second consecutive quarter [6] - Projected gross ammonia production for 2025 is approximately 10 million tons [6] Market Data and Key Metrics Changes - Strong global demand for nitrogen fertilizers is driven by low corn stocks and favorable farmer economics in North America, with USDA reporting corn planting expectations of 95 million acres [10] - Channel inventories of nitrogen fertilizer are low due to high demand and production outages, supporting prices into the second quarter [11] - The global nitrogen supply-demand balance is expected to tighten through the end of the decade, with limited new project growth [12] Company Strategy and Development Direction - CF Industries is focused on growth through the Blue Point joint venture with JERA and Mitsui, which aims to supply low carbon ammonia [4][5] - The company is nearing completion of its carbon capture and sequestration project at the Donaldsonville complex, expected to start in the second half of 2025 [6][7] - The company plans to return $5 billion to shareholders through share repurchases and dividends since the beginning of 2022, with an additional $2 billion share repurchase program authorized [5][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate free cash flow and create value for long-term shareholders [19] - The company anticipates favorable industry dynamics for its North American production network in the near term, with a tightening nitrogen supply-demand balance expected in the long term [19] Other Important Information - CF Industries will hold an Investor Day on June 24 in New York to discuss strategy and long-term outlook [18] Q&A Session Summary Question: Do you have any off-take agreements for blue ammonia from the Donaldsonville project? - Management confirmed that agreements are in place for blue ammonia, structured for growth, with expectations for increasing demand as the product becomes available [21][22] Question: Is CF Industries interested in the Air Products project in Ascension Parish? - Management indicated that the project presents challenges and is not of interest due to high operating costs associated with hydrogen production [24][25] Question: Can you clarify the conditions regarding JERA's option to reduce their stake in Blue Point? - Management expects JERA to maintain their 35% ownership and is comfortable with the potential return of 15% of the economics, which would still leave CF Industries with a majority stake [29][30] Question: How do you see the nitrogen market evolving in the coming months? - Management noted a positive market outlook for Q2 and Q3, driven by low inventories and strong demand for nitrogen products [36] Question: How is CF Industries mitigating potential capital inflation for the Blue Point project? - The company is utilizing modular construction to reduce on-site labor and inflationary pressures, with fixed-price contracts for construction [40][41] Question: What is the expected impact of tariffs on nitrogen derivative markets? - Management discussed the complexities of current trade policies and the potential for Russian products to enter the U.S. market tariff-free, affecting pricing dynamics [55][57] Question: How will CF Industries report Blue Point in its financials? - The company plans to consolidate Blue Point into its financials, reporting revenue and costs associated with the joint venture while maintaining its existing ammonia segment structure [108][110]